In a bold move to cut government waste, President Trump has ordered the Treasury Department to suspend minting pennies. Pointing out the skyrocketing costs of production, Trump announced the decision via Truth Social account, stating, “For far too long, the United States has minted pennies which literally cost in excess of 2 cents. This is pure waste! It’s time to cut unnecessary spending from our nation’s budget, even if it means starting with a single penny.”
The decision comes amid concerns over the financial burden posed by penny production. The U.S. Mint says the cost of producing a single penny has risen to almost 4 cents, up from barely 3 cents the previous year. With 3.2bn pennies minted in the last fiscal year, the government reported an $85.3mn loss solely due to the coin’s production.
This inefficiency has long been debated, with critics arguing that continuing to produce a currency denomination that costs more than its face value is an unnecessary drain on federal resources.
While Trump’s directive has been issued, questions remain regarding whether he holds any legally-binding authority to singlehandedly eliminate the penny. According to U.S. law, currency specs—including coin size or metal composition—fall under Congress’s jurisdiction.
According to Robert Triest from Northeastern University, there may be a measure of leeway in the decision to get rid of the penny. He says that while Congress would likely need to pass legislation to officially phase it out, the Treasury secretary might have the authority to halt the production of pennies.
The push to eliminate the penny is not new. Lawmakers have previously introduced legislation aimed at suspending its production, removing it from circulation, or mandating price rounding to the nearest five cents.
Proponents argue that eliminating the penny would lead to significant cost savings, streamline cash transactions, and modernize the currency system. Many nations have already phased out their lowest denomination coins, with Canada stopping penny production in 2012.
Although Trump did not campaign on this issue, it appears to have been influenced by billionaire Elon Musk’s so-called Department of Government Efficiency. Musk’s initiative, which aims to cut $2 trillion in federal spending, had previously highlighted the penny’s wasteful production costs in a post on X.
As the debate unfolds, the fate of the penny remains uncertain. Whether Congress will support Trump’s initiative or resist the change remains to be seen. However, one thing is clear: the push to eliminate the penny is now at the forefront of national discussions on government efficiency and economic reform.
While it is possible for the Treasury to act on Trump’s request to end penny production, this is unlikely to affect the market for copper in any way. Firms like First Tellurium Corp. (CSE: FTEL) (OTCQB: FSTTF) will most likely continue with their plans to develop copper-rich properties since the industrial demand for this metal is growing year by year.
NOTE TO INVESTORS: The latest news and updates relating to First Tellurium Corp. (CSE: FTEL) (OTCQB: FSTTF) are available in the company’s newsroom at https://ibn.fm/FSTTF
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